Mansion owners can sleep easy but top earners may take pensions hit

Liberal Democrats accept that their chances of winning Mr Cameron’s approval for a tax on top-end properties is unlikely to bear fruitPA

Top earners are at risk of losing generous tax breaks on their pension contributions after David Cameron and Nick Clegg agreed a truce over the so-called mansion tax.

Liberal Democrats accept that their chances of winning Mr Cameron’s approval for a tax on top-end properties is unlikely to bear fruit. Instead, the Government is examining new curbs on the tax relief given to higher earners, particularly those earning more than £150,000 a year.

The plans would form part of a tax crackdown on the wealthy that the Government is considering in return for axing the 50p top rate levied on income above £150,000.

A trade-off between the coalition partners is beginning to take shape which would allow the Chancellor George Osborne to abolish the 50p…